Inside Pigs
Pig price at lowest point in more than 10 years
It has been a difficult week in the pig market, with scheduling challenging and prices mutating downward. How does the DCA Stock Price 2.0 move?
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These days, sales in many places are accompanied by... we tackle. First of all, there is the warm weather, which sometimes makes planning a difficult puzzle. There are developments in the market that raise concerns. The price falls in recent weeks have further damaged already fragile confidence.
For example, the German pig price (the VEZG quotation) has fallen further this week (-€0,02) to €1,39 per kilo. The time when the pig price was even lower in this week of the year dates back to before 2005. Only in the 'crisis year' 2015 was the pig price a fraction higher than the current level.
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The German pig price is now well below the 5-year average.
There appears to be no way forward in the short term. Due to the holidays, production in the meat processing industry is at a lower level. As a result, sales of parts sometimes fail. Ham sales in particular are mentioned, but middle cuts and bacon are also declining by a few cents per kilo. From this perspective, it is probably not a bad thing for slaughterhouses to slaughter less. Sales of fresh parts are also slow. The warm weather means less consumption.
Pig offerings vary
Interpretations about the offer differ. While some places have a wide supply, others speak of few pigs. Especially the traders who are oriented towards Germany are getting rid of the pigs quite well. This has to do with the fact that the supply at German slaughterhouses is not plentiful. Last week, 927.229 pigs were slaughtered there, with an average slaughter weight of more than 97 kilos. The slaughter number is about 3% lower than the same week in 2017 and 1,5% below the 5-year average.
The hope is that calm will return to the market soon. That could create relaxation on the piglet market. The statements at DCA Markets show that the Dutch pig trade is not completely unanimous, as is evident from the price range. However, the DCA Exchange Price 2.0 for slaughtered pigs remains at €1,33 per kilo, but the price of live pigs also remains unchanged and stands at €1,06 per kilo.
| DCA Scholarship 2.0 (week 31) | Price range | Number of problems | Average |
| Gender €1,33 (approx.) per kilo | € 1,31 - € 1,34 | 12 | €1,325 |
| Live €1,06 (approx.) per kilo | € 1,04 - € 1,06 | 11 | €1,052 |
| Explanation of DCA Markets: Opinions about the current situation on the Dutch pig market vary. The situation of adequate supply in terms of demand, the holidays that are in full swing and the difficulty of meat sales seem to be gray pictures. Looking through the lens of the slaughterhouses, further reductions are logically in the offing. Slaughterhouses have suffered major losses in recent weeks. For the coming week, the number of slaughters will be adjusted downwards in an attempt to limit losses, while the pigs are still there. However, there does not seem to be any question of pigs being passed on. Germany reportedly takes the pigs well, even at the beginning of the week. The trade is therefore of the opinion that the DCA Exchange Price 2.0 should not always lead the way with reductions and is happy to hand over the baton to the slaughterhouses for week 31. Let them indicate where pig prices should go, and they will follow. This picture is reflected in the statements of traders, which are unchanged for week 31. | |||